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Parms + Company has been ECDI’s auditing firm for 3 years and we have been pleased with our working relationship with the firm. As 501(c)(3) that receives in excess of $500,000 of Federal funding per year, this audit is critical to ECDI as it becomes our “scorecard to the world.” - Steve Fireman President Economic and Community Development Institute

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Workers’ Comp Update for Nonprofits

October 15, 2015

BWC ends mandatory coverage for Volunteer Officers of Nonprofits.

New legislation recently went into effect that will have a positive on Ohio’s nonprofit organizations.

Effective September 29, 2015, the Ohio Bureau of Workers’ Compensation no longer requires nonprofits to have workers’ compensation coverage for their volunteer corporate officers. This means nonprofits will no longer need to pay premiums for these individuals.

Historically, under Ohio law, corporate officers – whether paid or unpaid – had been characterized as employees for workers’ compensation purposes and considered employees. Therefore, nonprofits were required to report minimum payroll to BWC and pay premium payments to cover their volunteer corporate officers.

Under the new legislation, true volunteer officers of nonprofit corporations are no longer treated as employees an no longer subject to mandatory workers’ compensation coverage.

This much-needed law change removes an unnecessary financial burden on Ohio’s nonprofits. This change frees up more money for nonprofit organizations to provide services that help local communities throughout Ohio.

On the other hand, if a nonprofit wants coverage for its volunteer officer, it need only report some amount of pay to the officer; however, this individual will no longer be considered a volunteer. This employee is then subject to minimum and maximum reporting requirements.





Source:
Ohio BWC ENews
Ohio Revised Code Sec. 4123.01(A)(2)(d)

Parms + Company has proactively and professionally guided us through these audits and have made what can be an unpleasant and difficult process as productive as possible. Every audit is a teaching opportunity and John Parms and his team embraces this role always demonstrating a superior handle of the code and a unique ability to communicate clearly even to non-financial professionals. - Steve Fireman President Economic and Community Development Institute